AHMSA and Posco to Explore Mining, Steel Production Activities
02/10/2012 - Altos Hornos de México S.A.B. de C.V. (AHMSA) and Pohang Iron and Steel Co. (Posco) have entered into a letter of intention to jointly evaluate mining as well as iron and steel projects.
Altos Hornos de México S.A.B. de C.V. (AHMSA) and Pohang Iron and Steel Co. (Posco) have entered into a letter of intention to jointly evaluate mining as well as iron and steel projects.
The subject of the agreement is analysis of a potential mining joint venture that would supply iron ore to the Korean company. Also under the joint venture, Ahmsa will also have the potential, using Posco’s experience in manufacturing automotive-quality steel, to supply its national market with a product that is not currently manufactured in Mexico.
Under the Letter of Intention, both parties are to determine within the next six months the elements required to establish a mining joint venture that would supply iron ore to the Korean company. Additionally, both companies will review and analyze a possible collaboration related to the production of rolled steel, which will enable the companies to take advantage of the potential of the iron and steel markets in their locations.
To AHMSA and Posco, the Letter of Intention and working together represents a valuable option to consolidate their position in their regional markets.
The agreement was signed in Seoul, Korea, by Alonso Ancira Elizondo, Chairman of AHMSA’s Board of Directors, and Jongtai Choi, Chairman of Posco’s Board of Directors. The signing was witnessed by Oscar Pimentel González, Secretary of Urban Management, Water and Land Management of the State of Coahuila, and Manuel del Villar, Commercial Counsel of Proméxico in Korea.
AHMSA is a major integrated iron and steel company in México. It has facilities in Monclova, State of Coahuila, and it operates its own iron ore and coal mines. With a current annual capacity of 3.8 million tons of liquid steel, it will reach 55 million tons by the end of 2012 when the Fenix Project is completed.
Posco, located in Pohang, Korea, is one of the world’s top ten steel producers, with an annual capacity of 35.4 million tonnes of liquid steel. It operates mainly two iron and steel plants in Pohang and Gwangyang, Korea, as well as USS-Posco in Pittsburg, Calif. It produces cold and hot rolled steel and a wide variety of steel of very high specifications for automotive use, as well as conductive pipes for gases and liquids.
